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European shares slip as pull-back in banks, miners weighs

Published 24/02/2017, 04:12 am
© Reuters.  European shares slip as pull-back in banks, miners weighs
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* STOXX Europe 600 index ends down 0.1 pct

* Banks, miners lead sectoral gainers

* Barclays turns lower on pension concerns

* Dialog surges on results, but Technicolor disappoints (Adds details, closing prices)

By Atul Prakash and Danilo Masoni

LONDON/MILAN, Feb 23 (Reuters) - European shares fell slightly on Thursday, weighed down by a pull-back in banking and mining stocks in a day where trading activity was dominated by a raft of company earnings.

Shares in British bank Barclays BARC.L reversed course during the day to end down 2.6 percent, as a surprise boost to its capital reserves failed to convince.

Some analysts flagged concerns over the sustainability of the bank's capital level in relation to the accounting treatment of its British pension scheme. in Barclays and in HSBC HSBA.L , which continued its slide after a disappointing update earlier this week, resulted in a 1 percent fall for Europe's banking index .SX7P .

The Basic Resources index .SXPP was another weak spot, down 1.5 percent, tracking weaker metal prices and weighed down by a drop in heavyweight Rio Tinto RIO.L which went ex dividend. Copper prices tumbled as worries about demand in China resurfaced after the country's housing minister suggested moves were afoot to stabilise the property market. MET/L

The pan-European STOXX 600 index .STOXX ended down 0.1 percent after hitting a 14-month high in the previous session.

Germany's DAX .GDAXI fell 0.4 percent. There was little impact earlier in the session from data which confirmed the country's economy quadrupled its growth rate to 0.4 percent in the fourth quarter Semiconductor DLGS.DE surged 6.9 percent, the biggest gainer on the STOXX. The maker of chips that go in Apple's AAPL.O and Samsung's 005930.KS smartphones said it expected "good revenue growth" in 2017 shopping centre landlord Intu Properties INTUP.L was up 6.8 percent after hiking its dividend for the first time in five years, while insurer RSA RSA.L was up 4.8 percent after posting a 25 percent rise in 2016 operating profit and raising its return on equity target. TCH.PA however fell 7 percent, the biggest decliner on the STOXX, after the French media and entertainment company reported a net loss.

French water and waste group Veolia VIE.PA dropped 5.8 percent after pushing back its forecast for core earnings by a year 55 percent companies in the STOXX 600 have reported fourth quarter results so far, of which 56 percent have met and 3 percent have beaten analyst forecasts.

(Editing by Alison Williams)

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